HDFC Bank chair quits over 'ethics', wiping Rs 1 lakh crore from market cap
Atanu Chakraborty, the part-time chairman of HDFC Bank, resigned on 19 March citing ethical differences with the institution, in a sudden departure that rattled Indian equity markets. Shares in the bank fell as much as 9% on the day, erasing roughly Rs 1 lakh crore in market capitalisation, according to Indian media reports.
The nature of the disagreement has not been formally disclosed. Reuters reported the exit may stem from a rift between Chakraborty and bank management, a characterisation the bank has not confirmed. Bloomberg described the board as 'baffled' by the resignation, underscoring the lack of internal consensus around the departure.
Keki Mistry, a veteran of the broader HDFC group, has broken his silence following the exit and is reported to have been named as the new chairman. HDFC Bank also issued a statement directed at investors, seeking to contain the market reaction.
The sell-off extended beyond HDFC Bank itself, with Reuters noting that Indian equities recorded their steepest single-day decline in nearly two years on the session, compounded by a spike in oil prices.
HDFC Bank is the largest private sector lender in India by assets and one of the most heavily weighted stocks in Indian benchmark indices, making governance disruption at the institution a systemic market event rather than a company-specific one. Investors and analysts have indicated that while valuations may now appear attractive following the drop, clarity on the circumstances of the resignation will be critical before confidence is restored.
